WorksheetsPrinciples of Money Vocab Quiz
Total questions: 20
Worksheet time: 10mins
What is the primary function of a debit card?
To borrow money
To make purchases directly from a bank account
To write checks
To earn rewards
Compare the security features of checks and electronic funds transfers.
Checks are more secure than electronic funds transfers
Electronic funds transfers are more secure than checks
Both have the same level of security
Neither has any security features
How does a credit card differ from a debit card?
Credit cards are linked directly to your bank account
Credit cards let you borrow money to make purchases
Debit cards allow you to borrow money
Debit cards require you to pay interest
Analyze the impact of using credit cards irresponsibly.
It can lead to increased savings
It can result in debt accumulation
It can improve credit scores
It can reduce spending
Plan a strategy for managing personal finances using a combination of cash, debit cards, and electronic banking.
Use only cash for all transactions
Use debit cards for all purchases and avoid electronic banking
Use a mix of cash for small purchases, debit cards for larger transactions, and electronic banking for bill payments
Avoid using any form of electronic banking
What is cash?
A type of electronic payment
Physical coins and paper bills
A digital currency
A type of bank account
Evaluate the benefits of electronic banking transfers over traditional banking methods.
They are slower and less reliable
They are less secure
They are convenient and accessible 24/7
They require physical presence
What is a potential disadvantage of using cash?
It can be easily tracked
It can be lost or stolen
It requires a bank account
It incurs interest charges
What is the main reason checks are still used despite the rise of electronic payments?
They are faster than electronic payments
They are more secure than electronic payments
They are used for certain payments where electronic options are not available
They are a form of digital currency
Design a plan to minimize the risk of theft when using cash.
Carry large amounts of cash at all times
Use a combination of cash and electronic payments, keeping cash amounts low
Avoid using any form of electronic payment
Store cash in easily accessible places
What is a key advantage of using electronic funds transfers for businesses?
They are slower than checks
They require physical cash handling
They are fast and often free
They are less reliable than cash
Which of the following is a characteristic of a check?
It is a digital currency
It is a written order to pay someone from your bank account
It is a type of credit card
It is a form of cash
Which of the following is a similarity between a check and a debit card?
Both are forms of cash
Both require borrowing money
Both are linked to a bank account
Both are digital currencies
What is an electronic funds transfer (EFT)?
A physical transfer of cash
The electronic movement of money between accounts
A type of credit card transaction
A form of cash payment
Consumers can purchase items now and pay for them later.
Debit Card
Credit Card
Both
Rosa’s gas pump went out as she was driving her car to work. Since she did not have enough money to cover the cost to replace the pump, she used a card that allowed her to pay later. What card did she use?
Debit Card
Credit Card
Both
To avoid carrying cash, Ned pays for his lunch using this card. Each time he uses this card his checking account decreases. Which card did he use?
Debit Card
Credit Card
Both
Joseph applied for a card and was approved with a monthly spending limit for $200. Which type of card did he get?
credit card
debit card
either type of card
neither type of card
Tanya has a card issued to her by her bank that is linked to her checking account at the bank. Any charges she makes on the card are directly withdrawn from her account. Which type of card does Tanya have?
credit card
debit card
either type of card
neither type of card
something generally accepted as a medium of exchange, a measure of value, or a means of payment
bank notes
money
debit card
government bond
